Employers oftentimes offer severance agreements to employees that are subject to being terminated. Employers are not legally obligated to offer severance agreements, but may choose to do so for a number of reasons. A severance agreement will generally specify the terms of a separation, offer some monetary payment, and include a waiver of the employee’s rights to pursue any legal claim against his or her former employer.
Because severance agreements are typically enforceable and binding contracts, it is very important to fully review the language contained any severance agreement you may be provided with. Employers will usually provide employees with a certain time period to review a severance agreement and to have it reviewed by an attorney. It may be possible to negotiate a higher severance pay depending on the particular set of facts. You should always consult an attorney who can review your severance agreement, and inform you of your rights and obligations under the agreement.